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As has been rumoured for a long time Silence Therapeutics has signed a deal with a major pharmaceutical firm
Silence Therapeutics signs siRNA Research & Development Collaboration with AstraZeneca to develop Novel Respiratory Therapeutics
Collaboration to generate up to £200m (~US$400m) in access fees and milestones plus royalties on product sales
London, UK, 6 July 2007 Silence Therapeutics plc (London LSE: SLN) announcesthat the Group has entered a Research & Development collaboration withAstraZeneca primarily in the respiratory field. Silence Therapeutics willreceive initial access fees, clinical development and commercial milestonepayments of up to £200m (~US$400m) plus royalties on product sales.The three-year collaboration announced today is designed to discover anddevelop proprietary siRNA molecules against up to five specific targetsprovided by AstraZeneca. Silence Therapeutics and AstraZeneca will jointlycollaborate in the early phase of identification and optimisation of novelsiRNA molecules. AstraZeneca will retain full responsibility for the clinicaldevelopment and commercialisation. The agreement is primarily in therespiratory field but includes an option to allow for targets that extend thecollaboration into other disease areas of interest to AstraZeneca.
Silence Therapeutics will provide AstraZeneca with a license to its proprietarysiRNA technology in return for an initial access fee of £7.5m (~US$15m),comprising a payment of £2.5m (US$5m), plus an equity investment of £5m(~US$10m). The £5m (~US$10m) equity investment in Silence Therapeutics plc willbe at 146p per share, which equates to a 10% premium over the volume weighted average price (VWAP) for the 10 trading days prior to the close of the marketon 5 July 2007. As a result of this agreement, AstraZeneca will hold 2.94% of the total voting rights of Silence Therapeutics plc.
As ever the stockmarket reaction defies logic, the deal is worth £200m - AZN have agreed to buy SLN shares at 146p so the share price falls from 137p to 134p !
Online stock trading ain't easy !
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